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Last Updated
11/20/09    09:28 PM


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The week of February 09, 2009
Why it may be time to take another look at fleet work
by John Yoswick

Many shops have shied away from fleet work in the past, viewing it – rightly or wrongly – as low-profit work for fleet managers that tend to be focused far more on price than quality. But as insurance-paid consumer work becomes increasingly controlled, more shops are giving fleet work another look – and some are liking what they see.

Fleet work can help keep your business from becoming too dependent on any one or two sources of work – and busier when shops dependent on insurance work may be slower. While some fleet work is very price-driven, some fleet managers understand that it can make economic sense to pay extra for quick turn-around time. Fleet work can help fill a shop that has a less-than-ideal highly-visible location. And It can act as a “loss leader”: Drivers who are satisfied with your service and the quality of the repair you did on the company car they drive (even if you had to do it at a discount) are likely to bring their personal vehicles (and refer others) to you as well.

Potential sources of fleet work

If fleet work seems to fit with your business plan, the next step to track it down. Looking for potential fleet work can be as simple as keeping an eye out as you drive around town. Any vehicle on the road with signage indicating that it is a commercial vehicle may be one of a half dozen – or 150 – that company operates.

Some of the common sources of fleet business for collision repair shops include:

• Law enforcement agencies. One shop owner swears that for whatever reason having a police or sheriff's department vehicle in his shop is a great confidence-builder for other potential customers.

• Utilities. The largest oil, natural gas, phone, cable and electric companies tend to have their own repair shops, but plenty of others need work on their cars, trucks and vans of all types.

• Delivery and courier services. You might not want to work on larger UPS or FedEx trucks, but a quick check of your local phone book will help you find plenty of other companies with fleets of cars and small trucks making deliveries around town.

• Rental car companies. Many shops have found this to be some of the least profitable work available; others says it's a reliable source of fill-in work that helps keep their shop humming.

• Corporate fleet management companies (which oversee fleets repairs for Fortune 500 and other large companies), such as the CEI Group ( www.ceinetwork.com ), Drivers Shield ( www.driversshieldautoclub.com ) , PHH Corporation ( www.phharval.com ) , Wheels, Inc. ( www.wheels.com ), and GE Fleet Services (www.GEfleet.com).

• Contractors. Plumbing, electrical and remodeling contractors tend to rack up a fair amount of on-the-road and job-site damage needed repairs. Shops say these fleets often look to save money by asking for partial repairs that will get the vehicle back into service even if not always looking first-class.

• Taxi and limousine companies. As with rental car firms, taxi companies are generally experienced at negotiating the best deal they can on vehicle repairs. But if that's not the type of work you're looking for, don't rule out the towncar and higher-end market that invest in nicer vehicles and have customers who expect more than a patched-up checker paint job.

• Any organization with a mobile sales force. If a company puts employees out on the road conducting sales calls, the odds are good they're doing so in company-owned cars. Pharmaceutical companies, for example, have fleets of cars for employees calling on doctors and pharmacies. Ask other business owners you know what kind of companies call on them – and what kind of vehicles those sales agents are driving.

• Municipalities. Some cities, counties and states often have their own repair shops, but if not, it can be attractive work. You may enjoy preferred status for getting the work if your business is woman- or minority-owned.

Attracting the work

Once you've identified potential fleets, it's time to start thinking like a fleet manager: What will compel them to choose you to do their collision repair work?

Competitive pricing. Discounts are often expected, particularly when working with large national fleet management companies. Some expect a set percentage discount on the entire job – and then may or may not also pick apart each estimate line by line. But smaller fleets – and particularly those that need vehicles fixed quickly – may be willing to pay closer to full retail pricing.

Faster repairs. Every day that vehicle is in a shop is another day it's not making any money for the company that owns it. So turn-around time is critical. Having even a partial evening or weekend crew that helps improve your cycle time can be an especially good selling point for fleets.

Additional vehicle services. Being able to provide paintless dent repair or mechanical services for vehicles can also help you compete for fleet business.

Business exchange. Companies like to do business with those who buy from them. Right after the contractor you hire to do some work at your shop finishes the project may be a good time to ask who repairs their vehicles.

 

John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (www.CrashNetwork.com). He can be contacted by email at jyoswick@SpiritOne.com.



NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.


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